User Account

All Pages

Compute what will be effect on profit of accepting order

Assignment Help Financial Accounting
Reference no: EM132593321

PowerDrive, Inc. produces a hard disk drive that sells for $175 per unit. The cost of producing 25,000 drives in the prior year was:

Direct material $625,000

Direct labor 375,000

Variable overhead 125,000

Fixed overhead 1,500,000

Total cost $2,625,000

Question 1: At the start of the current year, the company received an order for 3,200 drives from a computer company in China. Management of PowerDrive has mixed feelings about the order. On the one hand they welcome the order because they currently have excess capacity. Also, this is the company's first international order. On the other hand, the company in China is willing to pay only $140 per unit. What will be the effect on profit of accepting the order?

Reference no: EM132593321

Questions Cloud

Calculate the equilibrium price and quantity of kittens : Suppose the market for kittens adoption centre can be described by the following equations:
External environment of organization : The external environment of an organization comprises of all the entities that exist outside its boundary but have significant influence on its growth
Why the supply curve of the trucking industry is kinked : Show in a chart with proper labels, how the supply curve of the Canadian trucking industry reacts to different economic cycles?
Marketing excellence-bmw case study : Examine and apply the consumer-buying process for BMW. Identify the steps and the application to BMW. How does this process assist the marketing team at BMW?
Compute what will be effect on profit of accepting order : On the other hand, the company in China is willing to pay only $140 per unit. What will be the effect on profit of accepting the order?
What are the optimal l and p : Knoebels Amusement park charges a lump-sum fee, L, to enter its Crystal Pool. It also charges p per trip down the slide on the pool
What is the price if a markup of forty percent : Demand is estimated to be 100,000 units annually. What is the price if a markup of 40% on total cost is used to determine the price?
Consequences of increasing interest rates on the us economy : Please discuss the consequences of increasing interest rates on the US economy, taking into consideration the global ramifications.
Real companies and hypothetical situations : You have reviewed many areas of law and various ethical frameworks and applied them to both real companies and hypothetical situations

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd